Is the Departure from a Procedural Order by an Arbitral Tribunal Considered to Be a Procedural Error?

In a recent judgement, the Swedish Supreme Court rejected an appeal against the decision of the first instance which set aside an arbitral award in part due to a procedural error of the arbitral tribunal. The particularity of this case stems from the fact that the procedural error derived from an earlier procedural order of the tribunal and the fact that the parties were not allowed the opportunity to fully argue their case after the tribunal decided to deviate from its earlier ruling of which the parties were not informed. This serves as a reminder of the importance of observing due process and allowing parties the opportunity to make full submissions on each aspect of the case. It also underlines the need to discuss the legal nature of procedural orders in the arbitration community and the need to define the line between the parties’ right to be heard and the tribunal’s discretion in conducting the proceedings.